QUESTION
(i) Explain the term Position Audit and discuss how it helps an organisation perform better planning
(ii) The marketing manager of Juicy Drinks Ltd has invited you in for a chat. Juicy Drinks Ltd provides fruit juices to a number of supermarket chains, which sell them under their own label. We've got a large number of products, of course. Our freshly squeezed orange juice is doing fine - it sells in huge quantities. Although margins are low, we have sufficient economies of scale to do very nicely in this market. We've got advanced production and bottling equipment and long term contracts with some major growers. No problems there. We as well sell freshly squeezed pomegranate juice: customers loved it in the tests but producing the stuff at the right price is a major hassle: all the seeds get in the way. We hope it will be a winner, once we get the production right and start converting customers to it. After all the market for exotic fruit juices generally is expanding fast
Questions-
The Boston Consulting Group (BCG) matrix is one of the best-known portfolio planning methods
(a) Using to the Boston Classification, identify sorts of products which are described in the above instance?
(b) Discuss, using examples, the four planning strategies the BCG matrix prescribes with respect to a company's Strategic Business Units (SBUs)
(c) Like all analytical techniques, the BCG matrix has some limitations. Identify these limitations